Commodities are down and so is the Canadian dollar to the USD

By MoneyWay | Jun 3, 2021

This morning’s economic numbers, reinforces that inflation has a hold on the U.S. economy and some other global economies as well. Commodities have fallen across the board, metals are down on average 2.5% on the day, traders are expecting that the Federal Reserve is now under more pressure to admit that inflation is not just a short-term blip. Analogies of a roaring twenties economy are being used more and more by economists causing added instability to the investment process.

The Canadian dollar is weaker on expectations that the US may hike interest rates sooner than later, this will likely come to the forefront sooner than anticipated. CADS traders will now be keeping a closer eye on both the Bank of Canada and the Federal Reserve to see if there is any change in directions in their comments.

Expect the CAD to trade on the weak side today.

                                Currently*          Close                     Range

USDCAD               1.2110                   1.2032                   1.2029-1.2116

EURCAD               1.4690                   1.4690                   1.4676-1.4719

GBPCAD               1.7075                   1.7047                   1.7047-1.7126

*Indicative rates only

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